TNAG-2355-FCO40-3426-Visit-by-Douglas-Hurd--Secretary-of-State-for-Foreign-and-Co-1991 — Page 27

SECRET

BRIEFING FOR CABINET: 11 APRIL 1991:

SECRETARY OF STATE'S VISIT TO CHINA AND HONG KONG,

2-9 APRIL 1991

Points to Make

-

Outcome of Peking visit disappointing. Main objective was to obtain better Chinese cooperation in run-up to 1997, a change of gear in our relations over Hong Kong. I said

before going that we were not certain to achieve this

objective but that it was worth trying.

- Talks in Peking on international and general bilateral

questions satisfactory. Recorded our concerns on human

rights and Tibet.

Discussion of general principles on Hong Kong.

Agreement

to improve work of Joint Liaison Group: we shall see. Chinese said no wish to interfere in Hong Kong's day to day

administration before 1997. Li Peng said they had no other

objective than to maintain prosperity and stability before and after 1997 and to ensure a smooth transition of power.

Chinese also made welcome public statements to this effect:

no condominium, no control, no veto.

But where applied in practice we were unable to achieve a breakthrough on the new airport for Hong Kong. Official-level talks continue. Chinese remain intensely suspicious of HKG's intentions and ability to manage

prudently the airport project and Hong Kong's finances.

-

Key issues are financial (size of the reserves in 1997,

borrowing) and the degree of Chinese involvement in decision

making.

ACMAAT/1

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